Denver metro edges closer to ‘seller’s market,’ according to study

Posted by Tom Kalinski Founder RE/MAX of Boulder on Saturday, March 2nd, 2013 at 4:13pm.

ZipRealty included Denver among its Top 10 Best Cities for Home Sellers in its recently released List Price to Close Price Ratio Report based on MLS data covering 32 U.S. markets.

The Denver metro market 

The online residential real estate brokerage found that the gap between the listing price and closing price of an average home in the United States continues to narrow, with a growing number of homes selling for more than 98 percent of their listing price.

The study also showed that the median number of days a home spent on the market dropped to 44 nationwide in 2012, a 23 percent decline from 2011’s 57 days.

“A limited inventory of homes on the market, combined with the extremely low cost of mortgage financing, has resulted in homes selling above asking price in many western markets, boosting the average listing to closing price ratio,” explains Lanny Baker, Chief Executive Officer and President of ZipRealty. “The median amount of time that homes are listed on the market before they sell has shortened by more than two weeks since last year, and in some areas we are seeing one-in-five newly listed homes sell in less than seven days. Multiple-bid situations are also increasingly common in the markets we reviewed.”

In January 2011, the list to close price ratio in the U.S. reached 97.1 percent, and increased 40 basis points to 97.5% in 2012. The ratio hit 98.3% nationwide as of December 2012, according to ZipRealty data.

The close price of homes sold in the Denver metro market in 2012 was 99.8 percent of their listing price. And the median number of days they remained on the market in 2012 was 22, compared with 37 days in 2011, a decrease of 42 percent.

ZipRealty’s study showed the median days on the market continues to decline in many metropolitan areas, but homes are spending the least amount of time in the market in western cities. 

Not all of the metros on the Top 10 Best Cities for Home Sellers list were on the top 10 for Days on Market, but Denver made both.

Here’s a look at ZipRealty’s Top 10 Best Cities for Home Sellers and their list-to-close-price ratio as well as those cities’ median days on the market in 2012:

Tom Kalinski 
Owner and Founder
RE/MAX of Boulder

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